Many numbers come to mind when you think about a charities business: grants, fundraising, overhead and program costs. But here’s a number as important as any. It is a number that helps to determine the longevity of contributors and provides an extraordinary contributor experience.
It is the Contributor Lifetime Value (CLTV).
Any Executive Director looking to achieve long-term success must determine what a lifetime relationship with his or her contributor is actually worth in revenue. Calculating the CLTV enables the Executive Director to shift focus from individual donations and simply getting a buck in the short term to building trust and establishing lifetime relationships that will undoubtedly last for years.
By shifting the thinking away from merely asking for money and into building a relationship and establishing trust, the organization will begin to realize opportunities never imagined.
Enhancing the data with predictive data established by calculating contributions by individuals turns your contributor database of historical contributions into an engine to exponentially drive revenue.
MNC has the ability to assist you with the development of this operational strategy. Use this test link to help you begin to see the value of your contributor database. Just fill in your numbers or assumptions and begin to see the power to bring in a new stream of revenue.
Below is a to the point example of how your organization might calculate the value of the database. This is a very simplistic method but it will provide an example of the power. Just fill in the numbers and see how the contributor database reacts.